Scottish catering and hospitality news in Scotland

Head Chef and Sunday Herald columnist Geoffrey Smeddle (pictured) will join Nick Nairn and Tony Tobin as part of the Dundee Flower and Food Festival 2006.
The award-winning chef, who recently took over The Peat Inn, will contribute to the weekend-long event taking place at Camperdown Country Park from 1 - 3 September. As part of the extensive food programme, which also sees Nairn prepare his royal dish, Smeddle will be holding his cookery demonstration on Sunday 3 September.
'I'm delighted to be taking part in an event which helps to showcase some of the best food in Scotland,' he said.

Smeddle and his wife Katherine recently bought the The Peat Inn, near St Andrews, from his previous position as Head Chef at Sir Terence Conran's étain restaurant in Glasgow.

Hailed as the premier show of its kind in Scotland, the three-day Dundee Flower and Food Festival promises superb entertainment for families and garden & gourmet enthusiasts alike.

Two Scottish hotels are in the running for the Learndirect scotland Learning Employer of the Year award.

The Buccleuch Arms Hotel in Moffat and Edinburgh's Point Hotel have been invited to Learndirect Scotland's Celebration of Learning on 11 September at the Hub in Edinburgh, when the winner will be announced.

The hotels have been recognised for their commitment to and investment in staff training and development. The Buccleuch Arms perceived a lack of professionalism in small hotels and saw this as an opportunity to elevate its own profile by becoming known for the quality of its service. It has successfully created a climate of training as part of its corporate culture.
As a result of its commitment, the hotel was nominated for Investors in People champion status and has received a number of awards for its training and innovation in training practices.

Following a change of ownership last August, the new management at The Point realised that if its staff were not equipped with the essential skills that can be acquired through training, they would not be able to meet high standard of customer services and relations. The company has since invested considerable time and money to each individual employee's personal and professional development, and its efforts were recognised within six months by a massive positive shift in customer feedback and a service award for exceptional hospitality.

The Point Hotel's Deputy Manager, Jeremy Adderley, has also been nominated in the Learning Employee of the Year award category, in recognition of his continued personal and professional development.

Costco is staging its first 'Warehouse Gastro Evening' within its Edinburgh warehouse at Loanhead. Aiming to further promote the quality, selection and value it gives to its catering members, the event is open to existing members and any interested businesses from the catering community who want to visit the warehouse to see and sample for themselves the quality meats, fine wines and other fresh produce available from the warehouse.

During the evening there will be an opportunity to discuss many areas of interest, with specialist information available on key food areas including meat, fine wines, bakery, fish, delicatessen and fresh produce.

Costco's beef processor AK Stoddart and a number of its producer farmers will also be at the event, offering attendees the opportunity to better understand the entire supply chain, from supplier to customer. This will provide a unique opportunity for both sides of the chain to get a better grasp of their respective businesses and requirements.

The 'Warehouse Gastro Evening' takes place on Monday September 11 from 5pm to 8pm. Anyone wishing to attend should marketing107@costco.co.uk.

Edinburgh International Conference Centre (EICC), Chief Executive Hans Rissmann (pictured) has been appointed to be an honorary Officer of the Most Excellent Order of the British Empire (OBE), for services to workforce development.
Rissmann has led EICC to become the only congress centre in the world to be recognised by the European Foundation for Quality Management (EFQM) as an excellent company'.
Hans H Rissmann OBE is the EICC's first CEO and has led the team from architectural concept, through Royal Opening by Her Majesty The Queen in 1995, to an announcement earlier this month that EICC will double in size by 2009. To date EICC has staged almost 2,000 events, hosted 1.5 million delegate days and delivered an economic impact for Edinburgh and Scotland approaching £200m.

'I am very pleased to accept this honour in my adopted country and being recognised for assisting the development of our ultimate resource in business, our people, is most gratifying,' said Rissman. 'If ever there was an honour that should be shared with my team at Edinburgh International Conference Centre and with those connected with Investors in People Scotland then this is it'.

As Chairman of Investors in People Scotland, Rissmann has strongly supported the transformation of the organisation from service delivery unit to strategic leadership body for employee development, and today there are over 3,700 Scottish businesses working with the IiP standard, covering over 400,000 employees.

Heinz has announced the appointment of Phil Jones as Foodservice Director, Heinz UK & Ireland. Jones joins the company's leadership board in October from Coca-Cola Enterprises where, for over 18 years, he held a series of senior commercial and strategic positions in the foodservice, leisure, on premise and public sector channels.
'Phil has a strong track record of success and is a passionate business leader with integrity and a determined approach,' says Dave Woodward, President of Heinz UK & Ireland. 'He will be responsible for leading our company's plans for explosive growth in our foodservice business and we are delighted to have him on board.'

Minister for Environment and Rural Development Ross Finnie will visit Burnside Farm Foods this morning as part of the Minister's summer tour of the Borders and Dumfries and Galloway.
'Scotland is not in the business of mass production of food; we must focus on supplying high quality, value added products such as Burnside's,' said Mr Finnie.

Burnside Farm Foods is a family-run business led by Johnny Rutherford (pictured) who pride themselves in supplying fresh, quality meat, poultry and game to hotels, restaurants, and retail businesses throughout the UK and the continent.

Since 1988, Johnny and his wife Susan have developed Burnside Farm Foods into a high class supplier of high quality game, poultry, beef and marinated meats. Approximately 90% of the beef and game is sourced locally, supplemented with chickens from Tayside and beef from Black Gold, Aberdeenshire.

Following the success of Scotland's inaugural national chef scholarship in 2006, the Scottish Food Scholarship's search begins for budding Scottish culinary talent for 2007. The panel of judges will once more consist of a selection of Scotland's Michelin-star chefs who will travel throughout Scotland from the Highlands to the Borders as young contenders battle it our in a series of regional 'cook-offs'. Entries are now welcome by contacting the scholarship organisers, Crimson Edge PR.

Chefs aged between 18 and 28 employed in Scotland will be required to submit an entry form demonstrating their knowledge of Scottish seasonal produce with a short account of why they could be the next Scottish Food Scholar. The Scholarship, designed to encourage and develop national gastronomic talent will also open doors and opportunities for the winning chef. The winner will carry out a series of internships, working with some of the best in the food and catering world, both at home and abroad. Winner of the 2006 competition, Kevin Sutherland, received an internship with Martin Wishart at his eponymous restaurant in Leith and will undertake an internship in Melbourne Australia with Raymond Capaldi at the Fenix Restaurant.

'It's an important time to encourage young chefs to develop and build their skills with the current shortage of professionally trained staff in the industry,' says Martin Wishart. 'The Scottish Food Scholarship has been established to reward the effort and dedication of those at the beginning of their careers.'

Eligible chefs are invited to submit entries by the 6th December 2006. The judging panel, which includes Martin Wishart, Tony Borthwick, Keith Braidwood, Allan Donald, Jeff Bland, Matthew Gray and Chris Firth Bernard, will be looking for competence, an ability to work with seasonal ingredients and individual flair in a designated time frame. The winner and runners up will carry out a series of internships learning from experts within their field. The final cook-off will take place at ScotHot, Glasgow SECC on 26 February.

Entry forms are available from Crimson Edge PR Tel 0131 311 7050.

Best Western Huntingtower Hotel in Perth has announced the appointment of a new Management Team. Douglas Jack, formerly of Kinnaird House, Dunkeld, takes up the post of General Manager, with John Murray from Edinburgh's Capital Hotel joining as his deputy. The team has been completed with the appointment of Events Sales Manager Kelly Day from Ramada Jarvis in Perth, and Bill McNicoll, formerly of Kinloch House, as Head Chef.
'The appointment of the new Management Team is the first step in a programme of developments at the hotel which will see it reinstated as the number one choice for short breaks, corporate bookings, fine dining, weddings and business functions,' said Douglas Jack said.
'I am particularly pleased that Bill McNicoll has joined us as Head Chef. Bill gained a formidable culinary reputation during his time at Kinloch, and his arrival at Best Western Huntingtower has immediately paid dividends, as our Oak Room Restaurant has just been awarded 2 AA Rosettes.

The hotel is also undergoing a major refurbishment programme which will see all 34 bedrooms given a comprehensive facelift. Work on seven of the rooms, including the
magnificent new wedding suite, has already been completed, with the remainder scheduled for completion by the end of this year. The ongoing refurbishment programme has already seen an upgrade to conference and events facilities, with further works planned for later in the year.

Craig Millar (pictured right), award-winning Executive Chef and Co-proprietor of the Seafood Restaurants in St Andrews and St Monans joins the first City of Discovery Champagne Evening on Friday 1st September to give guests a unique chance to learn about champagne and how to choose food to go with it. The exclusive event will take place at the start of the Dundee Flower and Food Festival at Camperdown Country Park, where Craig will be demonstrating that afternoon.

Special guest Mark O'Bryen, who is only one of around 250 Masters of Wine in the world, will be speaking about the world famous Taittinger Champagne.

Mark's talk will give an introduction to the history of Champagne, and the historic House of Taittinger, followed by a tutored tasting of Taittinger's most famous Vintage, Brut Reserve and Rosé Champagnes. The three Taittinger Champagnes will be accompanied by a range of special canapés prepared and served by staff and students from Dundee College, using produce by Sainsbury's and Fisher & Donaldson.

All profits from the event will be donated to the Dundee Maggie's Centre to help with their work for cancer patients. Guests will also have the opportunity, through the Tasting Rooms, to purchase special cases of Taittinger Champagne and to take part in the 'Magnum for Maggie's' prize raffle.

Guests who would like to see free live cookery demonstrations by Craig and Walter, or to learn more about wine and food matching skills available locally through the Wine and Spirit Education Trust, should visit the Dundee Flower and Food Festival website for details about the programme for the three-day event.

There is still time to enter the first round of McDougalls Healthiest School Food Award 2007. Make sure you return your questionnaire by Friday 27th October and you could be well on the way to scooping £2000 for your school.

Rewarding and acknowledging schools that have successfully implemented a whole school approach to healthy eating, the award is open to both primary and secondary schools. Each school that enters will be judged on three categories: Healthiest menu, Most innovative marketing initiative to promote healthy eating, and Best holistic approach to healthy eating.

Entrants will be whittled down through a series of rounds with the winner of each category receiving £500. One will also go on to scoop the McDougalls Healthiest School Food Award 2007 plus an additional £1500.

For an application form contact the RHM Foodservice Caterer Adviceline on 0800 328 4246 or visit www.rhmfoodservice.co.uk.

A pioneering website is being launched this week in a bid to boost regional trading communities by putting businesses in touch with local suppliers.

www.offers4profits.co.uk has been set up to give catering and retail businesses the chance to link up with companies on their doorstep, building local relationships, reducing food miles and cutting delivery costs.

The site, which launches today is totally advertising driven and allows businesses to search for special offers by county in England.

Managing director Wendy Baird said the inspiration for www.offers4profits.co.uk came from her experiences in the catering and licensed trade.

"The idea for the site was prompted by a real need for businesses to build trading relationships in their region," she said.

"We are so used to dealing with national suppliers that we have forgotten that there is a local network of businesses who are minutes, not miles away.

"From a supplier point of view the benefits of dealing locally are considerable. It could be saving money through minimising delivery costs, reducing the environmental impact of the business through cutting food miles or even selling off surplus stock which the buyer collects.

"And from a buyer point of view, using local produce is a great selling point to customers and also offers the opportunity to see the produce before purchase and on occasion to buy something a little different or unique."

Suppliers can post their offers on the website for a fee of £10, per ad, per week, which are booked in blocks of ten and can be used at any time in a twelve month period.

Buyers then check the offers on the site in their area and contact the sellers direct, quoting www.offers4profits.co.uk to secure the preferential rate, deal or discount.

The target customers are anyone operating in the catering, retail and licensed trade, according to Wendy.

"The focus of the campaign is the food and drink industry but it also encompasses the likes of convenience stores and forecourts and other bulk buyers like community groups," she said.

"We hope that the site is going to become the place to buy for retailers looking for a special offer or a bargain to boost their business and for suppliers keen to sell goods on to a local market at the right price."

Scottish whisky enthusiast Misako Udo has landed a book deal with Black & White Publishing after reading a recent article about the independently-owned publishing house in the paper.
As soon as Ms Udo saw the article quoting Black & White MD Campbell Brown's forecast that the company's turnover will double over the next three years as demand grows, she contacted the firm to gauge its interest in publishing her own book.
As a result, her book, 'Scottish Whisky Distilleries, The ultimate companion for the whisky enthusiast' will be published by Black & White this October.
'I'd like to thank the Edinburgh Evening News for helping me find a publisher for my book,' said Ms Udo. 'If I'd never read that article, who knows if I'd ever have found another interested publisher'
For his part,Campbell Brown was delighted to hear from Ms Udo: 'Ms Udo's book provides the definitive comprehensive guide to Scotland's whisky distilleries, and we are certain that it will appeal to whisky enthusiasts world-wide.'

The Scottish arm of Eurest has secured a three-year deal with Pentlands Science Park.
Eurest will provide catering at the Pentlands Science Park's refectory in Penicuik, which is used by around 450 employees.
'We put together a comprehensive staff catering and hospitality package for Pentlands Science Park which met all the organisation's needs and we are delighted to bring this new business on board,' said Graham Box, Managing Director for Eurest in Scotland.
'The Park's conference facilities are second to none and we hope to work together with the conference coordinator to further develop the function business. We've already catered for the wedding of one of the Park's employees and are looking forward to building a long-lasting partnership with the organisation.'

Pentlands Science Park is owned by the Moredun Foundation, a registered charity that exists to promote the highest possible standards for animal health and welfare through research and education. The Park extends to 22 acres and provides around 160,000 sq ft of high quality offices and laboratories for the Moredun Group and the other site tenants.

John-Paul Kavanagh has been appointed General Manager of the Edinburgh Sheraton.
Currently Operations Manager of the Westin Turnberry Hotel, Kavanagh takes over running of the Edinburgh hotel from Peter Murphy, who left to join Macdonald Hotels as Managing Director in Scotland.

The Scottish Small Game Group (under the auspices of the Scottish Countryside Alliance) has teamed up with EatScotland, Braehead Foods and Highland Game in a search for THE MOST INNOVATIVE AND CREATIVE USE OF GAME ON THE MENU THROUGHOUT THE YEAR.

The What's Your Game? Cookery & Creativity Competition sets out to encourage and develop the imaginative use of game meat on restaurant and pub menus. The competition aims to nurture the creative use and knowledge of game, while developing appreciation of the different types of game available.

'We hope to see imaginative and consistent use and promotion of all game meats, from wood pigeon, rabbit, hare, quail, duck, and partridge to venison and pheasant,' says competition co-founder, Ross Montague (pictured) of the Scottish Countryside Alliance. 'The finalists will be those establishments in which the creativity, knowledge and use of game is consistent throughout the year and game is actively promoted to customers on the menu and front of house.'

For more information, contact Crimson Edge PR, on 0131 311 7050.

*The Scottish Small Game Group is a body established to promote the wider usage of game. Its membership includes the Scottish Countryside Alliance, the Federation of Chefs Scotland, the Scottish Gamekeepers' Association, the British Association for Shooting & Conservation, the Scottish Game Dealers/Processors' Association and several leading businesses from within the game industry.

People 1st, the sector skills council for the hospitality, leisure, travel and tourism industries launched its innovative UK Skills Passport to Scotland together with Patricia Ferguson, minister for tourism and culture on August 8 2006. Scotland is the first country to receive this new online, secure and verified record of achievement.

Developed in collaboration with VisitScotland, Scotland's national tourist board, the UK Skills Passport will revolutionise the way individuals and employers keep track of completed training and qualifications. Providing an easy to maintain online record of achievement it allows both prospective and current employers to gain an instant overview of the individual's skills.

Not only will it reinforce continuous personal development, but also avoid unnecessary repetition of training within employment, which costs Scottish businesses many thousands of pounds each year as individuals' skills, qualifications and training are not recorded efficiently by previous employers.

Spearheading the announcement of the UK Skills Passport is Peter Lederer CBE, chairman of VisitScotland, managing director of the award-winning Gleneagles Hotels and council member on the board of People 1st. He said: "It's very exciting to be launching the UK Skills Passport to Scotland before anywhere else.

"Scotland has a rich culture and history of hospitality, and it?s only with fully trained, competent employees that we can improve an already enviable tourist destination. The UK Skills Passport is a unique tool to help improve the hospitality, leisure, travel and tourism sectors in retaining staff, improving on-the-job training and giving employers an accurate idea of what a member of staff will bring to a position, and how best to develop them."

Tourism Minister Patricia Ferguson said: "People who work in the tourism and hospitality industries play an important role in driving Scotland's economy. "The UK Skills Passport will, I am sure, encourage more young people to follow a career path into these already thriving sectors."

Brian Wisdom, chief executive officer of People 1st comments: ?We?re very pleased to have two exceptionally prominent people from hospitality and tourism introducing the UK Skills Passport to Scotland. It demonstrates just how important this new record of achievement is to the industries we represent, and it will stand us in good stead as we continue to tackle the issues that face companies in the leisure, travel, tourism and hospitality sectors."

The Hotel & Catering International Management Association (HCIMA) is delighted to announce that it is hosting a Small Business Seminar, entitled 'Finding and Furnishing Your Property', on 28 September at The Bonham Hotel, 35 Drumsheugh Gardens, Edinburgh - from 2pm to 5pm.

Part of the HCIMA's highly acclaimed on-going series of Small Business Seminars, aimed at Small and Medium-sized Enterprises (SMEs), the September event will be of particular interest to hoteliers and restaurateurs. The speakers will include Adam Lansdown, Managing Director, Colliers Robert Barry; and Lisa Green and Patrick Crawshaw, Directors of Maxwell Green Design, based in Edinburgh.

"Finding the correct property at the right price in the right location, then furnishing it to fit the image and quality you wish to present to your prospective clientele, are crucially important to the success of any hotel," said Petra Clayton AHCIMA, HCIMA Director of Marketing and Communications. "We are delighted, therefore, that delegates will be able to benefit from the extensive expertise of industry professionals such as Adam Lansdowne, representing one of the country?s leading hotel and licensing property specialists; and experienced design consultants Lisa Green and Patrick Crawshaw."

Tickets for the seminar are free to HCIMA Members, and £75 (+ VAT) to Non-Association members. Bookings can be made by contacting the HCIMA on the Association's event hotline: + 44 (0)20 8661 4948; or emailing: david.golder@hcima.co.uk HCIMA Seminars can also be booked online at www.hcima.org.uk/seminars.

To keep abreast of the latest details on this event and others in the on-going series of HCIMA Small Business Seminars, as well as support material on the topics covered, please visit the regularly up-dated HCIMA Small Business Seminar website on: www.hcima.org.uk/seminars.

Scotland's hottest new chef is set to create a meal fit for a prince in aid of a charity which helps young people overcome barriers to get their lives working.

Tom Kitchin, whose stylish waterfront restaurant in Leith has been attracting rave reviews since it opened this summer, is offering a fabulous five-course tasting menu with wine for two in an auction at a glittering charity clay pigeon shoot in aid of the Prince's Trust.

The sumptuous night at The Kitchin, on Commercial Quay, is certain to attract the attention of some of the Edinburgh professionals taking part in the shoot, including teams from Royal Bank of Scotland, Microsoft, the Leith Agency and legal firms such as Morton Fraser, Tods Murray and Henderson Boyd Jackson.

The event will take place at Auchter House Country Sports near Dundee on Sunday, August 13. A pro-am style competition will be held in the morning followed by a champagne reception, lunch and a silent auction.

Other prizes on the day include a week at an exclusive ski chalet in Courchevel, golfing at Loch Lomond and a day on the set of Doctor Who.

The event, now in its sixth year, regularly raises up to £150,000 for the Prince's Trust, which helps 14 to 25-year-olds realise their potential and transform their lives through practical support including training, mentoring and financial assistance.

The Trust focuses its efforts on young people who have struggled at school, have been in care, are long-term unemployed or have been in trouble with the law. Since the charity was founded by The Prince of Wales in 1976, it has helped more than half a million young people.

Tom Kitchin, who has worked with Michelin-starred chefs such as Pierre Koffmann and Alain Ducasse, said: "It is a pleasure to be asked to help a charity as worthwhile as the Prince's Trust. I believe very strongly in the concept of giving something back and the Prince's Trust epitomizes this philosophy."

Hilton Craigendarroch has become the latest hotel to be presented with the Eat Safe Award for excellence in food hygiene and food safety management.

The Eat Safe Award Scheme was introduced by the Food Standards Agency in 2005 to recognise food premises that operate to high standards and to improve public confidence and consumer choice in catering establishments across Scotland. Eligible establishments are assessed for the award as part of food hygiene inspections carried out by Environmental Health Services and the award criteria is reviewed at every planned food hygiene inspection.

Tom McDermott, the hotel manager for Hilton Craigendarroch, was thrilled to accept the award on behalf of the hotel and confirms the importance of such an initiative.

"Being honoured the Eat Safe Award recognises the commitment made by our executive chef, Brian Donaldson, and his kitchen team, to achieve the highest standards in food safety management and food hygiene. We strongly support the Eat Safe Award Scheme as it provides an incentive for organisations to employ good food safety practice, which in turn lifts standards across the industry."

Christine Gore, Aberdeenshire Council's Director of Planning and Environmental Services said, "I would like to congratulate the Hilton for this achievement as making the grade for the Eat Safe Award involves ongoing commitment to food hygiene."

Hilton Craigendarroch comprises two dining options - the Club House Lounge & Restaurant and Oaks Restaurant & Study Bar.

The Club House Lounge provides a casual dining atmosphere with live entertainment on weekends and a family night during the week. It features picture windows opening out on to a secluded patio with views towards the hills of Royal Deeside. In comparison, the Oaks Restaurant and The Study Bar are more classic offerings, capturing the true flavour and atmosphere of a traditional evening in the Highlands - where you can relax and enjoy the finest cuisine and hospitality.

JAM Ventures is to launch a new luxury bar and restaurant at Edinburgh Quay in Fountainbridge, further establishing the development as one of the capital's top leisure destinations.

This will be the fourth restaurant to open at the Quay, following the arrival of Zizzi's, Festival Inn's Cargo Bar and Beanscene. Edinburgh Quay, which provides residential, office and restaurant/retail units, was recently named the best 'Mixed-Use Development' at the annual Scottish Property Awards 2006.

JAM Ventures has acquired a 4,993 square foot unit over three floors at an initial rent of £85,000 on a 25 year full repairing and insuring lease.

Jeremy Bone of JAM Ventures said that he is delighted to have secured the unit and they will open the doors to the public at the end of August. He said: "Edinburgh Quay is a fantastic development with a strong mix of bars and restaurants and we are looking forward to enhancing it further".

Property agents Cushman & Wakefield represented the landlords Deutsche Bank Real Estate Investors and JAM Ventures was represented by Savills.

Isla Monteith of Cushman & Wakefield said: "This new restaurant will be a great addition to the food offering at Edinburgh Quay. There is already a steady stream of customers during the day from the offices nearby and we are now starting to see it take off as an evening destination as well.

"Extensive further development is planned for the area, including office and residential schemes and as a result footfall is likely to increase significantly over the next few years."

There are currently three other restaurant units available in Edinburgh Quay ranging in size from 3,313 sq ft to 4,477 sq ft. For further information please contact Isla Monteith on 0131 226 8740.

Work is now underway on the construction of Phase 2 of Edinburgh Quay which will provide approximately 60,000 sq ft of Grade-A office accommodation, delivering the only new Grade-A office building in Edinburgh in 2006.

Macdonald Hotels Ltd has reported in the annual accounts a profit before interest of £17.8m. The net loss for the year ended 29 September 2005 was £29.9m.

Finance Director Gordon Fraser explained: "The results reported are in line with expectations.

"The underlying trading performance of the group has improved year on year. On a like for like basis, Turnover was up 4% and Hotel Operating Profit up 9%, this despite the significant disruption caused to the business by the large number of major capital projects redeveloping existing hotels such as the Dunkenhalgh Hotel & Spa, near Blackburn; Norton Grange Hotel & Spa, Rochdale; Brandon Hall Hotel & Spa, Coventry; Berystede Hotel & Spa, near Windsor; Frimley Hall Hotel & Spa, Camberley; Marine Hotel & Spa, North Berwick and Botley Park Hotel Golf & Country Club, near Southampton. Total capital expenditure in the year was £68m including £13m for the acquisition of Telecoms House in Manchester currently being developed into a luxury 215 bedroom hotel and office development.

"The loss for the year includes an impairment charge of £4.9m writing down the value of the Bear Hotel, Woodstock and Kilhey Court Hotel near Wigan. The Group has also had to consolidate losses of £3.2 m relating to its several joint venture and associate interests including Aviemore Highland Resort Ltd a 33.3% joint venture with the Bank of Scotland and Tulloch.

"Bank charges and interest costs at £48m reflect the high gearing of the Group following the privatisation in October 2003 added to by the aggressive capital expenditure programme. Since the year end we have renegotiated our debt facilities with the Bank of Scotland to more commercial terms which will substantially reduce the cost of borrowings in the future."

Looking forward, Gordon Fraser added: "We have invested heavily in developing a portfolio of quality assets with unparalleled upside in our industry, but that enhancement has come at a short-term cost. With the recent opening of the impressive 161 bedroom St Paul's Hotel in Sheffield, our increased shareholding in the Holyrood Hotel, Edinburgh from 19% to 100% and the redevelopment of our 5 star Bath Spa Hotel, we remain on course to secure our position in the premium four and five star markets. The portfolio will further benefit from the opening in 2007 of a 215 bedroom hotel in Manchester and a 275 bedroom hotel in Bristol.

"We look forward to realising the potential of these enhanced assets through a strong management team, a highly trained and professional workforce and first class products to deliver a truly memorable experience for our customers.

"We are also working closely with Deloitte with a view to concluding a sale and leaseback or sale and manage-back of 23 hotels. These hotels will continue to be operated by us as Macdonald Hotels under long leasehold or management agreements."